Cost of capital Edna Recording Studios, Inc., reported eamings available to common stock of $4,600,000 last year. From those eamings, the company paid a dividend of $1.18 on each of its 1,000,000 common shares outstanding. The capital structure of the company includes 35% debt, 15% preferred stock, and 50% common stock. It is taxed at a rate of 21% a. If the market price of the common stock is $45 and dividends are expected to grow at a rate of 5% per year for the foreseeable future, what is the company's cost of retained eamings financing? b. If underpricing and flotation costs on new shares of common stock amount to $5 per share, what is the company's cost of new common stocking? c. The company can issue $1.61 dividend preferred stock for a market price of $28 per share. Flotation costs would amount to $2 per share. W the coat of preferred stock financing? d. The company can issue $1,000-par-value, 11% annual coupon, 9-year bonds that can be sold for $1,260 each. Flotation costs would amount to $35 per bond. What is the after-tax cost of debt financing? e. What is the WACC? a. If the market price of the common stock is $45 and dividends are expected to grow at a rate of 5% per year for the foreseeable future, the company's cost of retained earnings financing % (Round to two decimal places.) b. If underpricing and flotation costs on new shares of common stock amount to $5 per share, the company's cost of new common stock financing is % (Round to two decimal places.) c. If the company can issue $1.61 dividend preferred stock for a market price of $28 per share, and fotation costs would amount to $2 per share, the cost of preferred stock financing is% (Round to two decimal places) d. If the company can issue $1,000-par-value, 11% coupon, 9-year bonds that can be sold for $1,260 each, and flotation costs would amount to $35 per bond, the after-tax coat of debt financing is %. (Round to two decimal places.) e. Using the cost of retained earnings, r, the firm's WACC, is %. (Round to two decimal places.) Using the cost of new common stock, the firm's WACC, is % (Round to two decimal places.)